Nifty trend for Thursday and stocks in news: Wipro, Reliance Industries and DLF

I’m sure you might have played the game of snakes & ladder in your childhood days. As we know, in this game, the ladder act as a short-cut for the player to reach the final destination, while on the other hand, the nature of snakes is quite contrary to this as in if a player lands at the top of a snake’s head, he/she gets bitten by the snake and slips down to square one i.e. at the snake’s tail.

Wednesday’s session was no less than this game for the market participants. While the renewed optimism related to the pandemic relief deal in the US acted as a ladder for the bulls and soon, the latter reached near about the last Thursday’s high. To be precise, they were just shy of 7 points to reach that level. However, just when the bulls were puffed with pride and the market participants were celebrating the moment with fist pumps and high fives, within no time, all hearts were broken as Nifty lost almost 240 points from the top. It was a similar feeling like a snake from the game hiss you and you move down within a blink of an eye.  

However, in the end, Nifty recovered nearly 150 points from the lower levels and settled at 11,938 levels, up by 0.34 per cent. The price action of the day formed a small body bearish candle with a minor upper and long lower shadow, which indicates high volatility. It took support around the level, which we mentioned in our last write-up, and also filled the gap of October 19.

Nifty tested near about 12,020 levels once again and failed to cross this fence. And, if one views it on the hourly chart, Nifty has formed a triple top pattern. As the name suggests, this pattern has three peaks and these three peaks are located in a similar price region. Going ahead, the level of 11,775 is likely to act as important short-term support. While on the upside, the zone of 12,000-12,025 is likely to act as a sturdy wall of resistance. Unless and until Nifty gets past 12,025 on a closing basis, it’s likely to stay vulnerable at higher levels and profit booking can be seen. Once this level is cleared, we expect it to test the levels of 12,140-12,220 in the short-term.

Interestingly, India VIX is moving in a band since the second week of August and what we have observed in the past is that when the volatility breaks out of the range or moves out of the band, violent moves are seen. So, one has to closely monitor India VIX as well.

All-in-all, after moving above the 12,000 mark but failing to sustain above this mark reinforces the credibility that this level is an important resistance point.

Wipro: Wipro and SAP collaborate to deliver ‘SAP Enable Now’ to provide a unique learning experience.

Reliance Industries: The company informs that its subsidiary, Reliance Retail Ventures Limited received the subscription amount of Rs 3,675 crore from General Atlantic Singapore RL Pte Ltd and allotted 5,38,65,884 equity shares to General Atlantic.

DLF: DLF inks one of the largest deals in commercial real estate in 2020 for an upcoming project namely, DLF Downtown with Standard Chartered GBS.